The Carbamide Plant belonging to the State Oil Company of Azerbaijan Republic (SOCAR) will produce up to 650,000 tons of urea in 2020, Carbamide Plant’s Director Khayal Jafarov has announced.
“Before the end of this year we expect to produce another 50,000 tons of urea. In 2020 production volumes are planned at the level of 600,000-650,000 tons, and export volumes – at 500,000-550,000. Moreover, the Turkish market is expected to account for 75-80% of the overall exports,” Jafarov said on the sidelines of an international conference on the role of the Paris Agreement in climate and environmental change.
The plant’s average monthly urea production is about 50,000 tons, which is some 2,000 tons per day, Jafarov stressed.
He also said that as of November 1 the plant produced about 125,000-130,000 tons of urea, of which 15,000 tons were sold on the domestic market, 30,000 tons were stored in the warehouse of the enterprise, and the rest was exported.
Furthermore, he said that the plant had begun repaying its loan, adding that in 2019 the amount of funds paid would reach EUR 66 million euros.
“The first tranche in the amount of 33 million euros was concluded by the enterprise in June, the second tranche in the amount of about 30 million euros is planned to be held in the second half of December. Thus, by the end of 2019, the company will have paid a loan obligation in the amount of 66 million euros,” Jafarov said.
He noted that the balance of loan obligations would be approximately 460 million euros in 2020. The payback period of the plant will extend to up to 10 years. The prices peak level on the urea’s world markets is observed in the summer and winter before sowing.
“At the moment, the urea market has dropped. Now we are waiting for the increase in the urea’s world prices in January-February of next year,” he stressed.
Jafarov also said that in the domestic market 15-20 companies with the appropriate licenses bought the plant’s products.
“In the domestic market, we are open to everyone. Anyone who has the appropriate license can purchase our products, “he added. (AzerNews/Business World Magazine)